Australia: Titan Energy, APLNG Sign Drilling Rig Contract
Titan Energy Services has secured a Letter of Intent (LOI) for its Rig 2 which has just completed a 14 month program with Arrow Energy.
The company has agreed terms with Australia Pacific LNG in relation to Atlas’s Gefco Speedstar Rig 2, that would see the rig operating for a six‐month term with a six‐month option.
Titan Managing Director Jim Sturgess said “With this new proposed agreement in place, Atlas’s four drilling rigs are operating under solid contracts with leading players in the CSG industry”.
“Rig 2’s rapid return to the field highlights the healthy demand we are experiencing for drilling rigs and other services as CSG activity ramps up.
“Through Atlas and Titan’s other subsidiaries, Resources Camp Hire and Nektar Remote Hospitality, the company is well placed to capitalise on the opportunities this creates.”
Earlier this month, Titan announced the $21.7million acquisition (cash‐free, debt‐free basis) of another business with a strong presence in the CSG industry, Hofco Oilfield Services.
The market leading directional drilling equipment and down‐hole tool rental provider is expected on a proforma full year basis to generate $8.5million
- in revenue and $5.1million
- in earnings before interest and tax (EBIT) during FY13.
The acquisition is expected to complete next month. Excluding Hofco’s contributions, Titan is targeting $9million‐$10million in EBIT during FY13.
The target represents circa 130‐150% growth on Titan’s FY12 result.
LNG World News Staff, February 27, 2013; Image: APLNG